IMF tips growth for India on-year in FY22 at up to 11.5%
NEW DELHI -- The Indian economy will stage a strong rebound and grow as much as 11.5% on-year in FY22, according to the International Monetary Fund (IMF), which has revised upwards its earlier forecast of 8.8% expansion. On this basis, India would be the only key nation to record double-digit growth and reclaim its status as the world's fastest-growing major economy.
In its World Economic Outlook Update, released on Tuesday, the IMF predicted that China would grow by 8.1% in 2021, followed by Spain (5.9%) and France (5.5%). Its expected China, the only country to register growth (2.3%) in 2020, to expand by 5.6% in 2022.
The IMF said. India's real gross domestic product (GDP) shrank as much as 8% in FY21 due to the Covid-19 pandemic. In FY23, India's economy would likely grow 6.8%, it said.
The IMF projected growth of 5.1% in 2021 and 2.5%% for the United States, 3.5% in 2021 and 3.1% in2022 for Germany, and 4.5% in 2021 and 5.0% in 2022 for the United Kingdom.
IMF Managing Director, Kristalina Georgieva, said earlier this month that India "actually has taken very decisive action, very decisive steps to deal with the pandemic, and to deal with the economic consequences of it".
"What we see is that transition, combined with policy support, seems to have worked well. Why? Because if you look at mobility indicators, we are almost where we were before COVID in India, meaning that economic activities have been revitalised quite significantly," Georgieva said.